🌮 Tacos and chill

Plus: Wildest tech at CES | Thursday, January 06, 2022

Open in app View in browser     Axios Closer By Hope King and Nathan Bomey ·Jan 06, 2022 Welcome back! Today's newsletter is 652 words, a 2½-minute read. 🔔 The dashboard: The S&P closed down 0.1%. Biggest gainer? SVB Financial Group (+7.5%), as did other bank stocks. Biggest decliner? Health insurer Humana (-19.4%). The stock collapsed after the company reduced its estimate for Medicare Advantage members.     1 big thing: Subscribing to food Taco Bell launched a $10-per-month taco subscription. Photo: Nikolas Kokovlis/NurPhoto via Getty Images   The subscription economy is expanding into the drive-thru lane, Nathan writes. Why it matters: Subscriptions offer a source of dependable revenue, loyalty and data — the same elixir that fuels streaming services like Netflix and exercise powerhouses like Peloton. The subscription economy grew nearly sixfold from 2012 to 2021, according to subscription management company Zuora's Subscription Economy Index. Driving the news: Fast-food chain Taco Bell on Thursday announced a $10-per-month subscription, Taco Lover's Pass, for one taco per day. Earlier this week, fast-casual chain Sweetgreen announced a special offer: $10 per month for $3-per-order discounts. "There's a lot of Americans eating fast food more than once a week, and if they see value in the subscription program, they will gladly subscribe," Adam Levinter, CEO of subscription consultancy Scriberbase and author of "The Subscription Boom," tells Axios. Be smart: Services are often betting that many subscribers won't take advantage of what they paid for. Subscription companies call it "breakage," Levinter says. Hence why gyms are better off when you don't work out. But restaurants like Taco Bell will benefit from subscribers who buy additional items and use their apps more often, providing data for marketing purposes. When Taco Bell tested its subscription service in Tucson, Arizona, in September, 20% of subscribers were new to the Taco Bell Rewards loyalty program. Between the lines: The strategy is also not likely a desperation pandemic move, either. The National Restaurant Association reported elevated same-store sales and customer traffic in the first half of 2021 compared to year-ago levels, which cooled only slightly in November. 83% of restaurant operators said their same-store sales rose between November 2020 and November 2021, while only 7% reported a sales decline. The bottom line: The subscription economy is entering a new dimension of our lives.     2. Charted: Bitcoin prices break away Data: FactSet; Chart: Thomas Oide/Axios The price of bitcoin is being impacted by the same outlook uncertainty that has been plaguing tech stocks, Hope writes. What's happening: It's moving further away from $100,000 — a marker some analysts predict the cryptocurrency will reach this year. Flashback: Bitcoin's value closed in on $70,000 in November, a record high.     3. What's happening 🎰 New York state is set to approve Caesars Sportsbook, FanDuel, DraftKings and Rush Street Interactive for operations as soon as Saturday. (WSJ) 🍹 Coca-Cola strikes deal with Corona parent company Constellation Brands to launch canned cocktails mixed with Fresca… during dry January. (WSJ) 💰 The New York Times is buying sports news platform The Athletic for $550 million in cash. (Axios)     A message from Axios A better way to communicate with stakeholders     What's new: AxiosHQ is a simple writing tool — perfected by Axios writers and machine learning — that helps you write with clarity and efficiency. It includes tips to make your internal communications more effective. For example, add an Axiom to highlight your main points. Learn more.     4. 🤖 Most buzzed-about tech from CES BMW iX Flow wrapped in digital paper technology. Photo: Business Wire   From clothes that let you "feel" the metaverse to inflatable homes designed for the moon and fitness trackers for your pet, the Consumer Electronics Show in Las Vegas delivered on its annual promise of attention-grabbing tech. What we wish we could have seen in person: Because CES has turned more and more into a concept-car show, BMW and Cadillac were there and made big splashes with their color-changing paint and luxury Batmobile vehicles, respectively.   Read more: What's happened so far at CES 2022   Share Axios and earn rewards If you like this newsletter, your friends may, too! Refer your friends and get free Axios swag when they sign up. Be a good friend and share   5. What they're saying... Jan. 6 edition Illustration: Shoshana Gordon/Axios   A special edition of "What they're saying" today on the one-year anniversary of the Jan. 6 attacks... Business groups — representing thousands of small and large companies — reaffirmed their commitment to stand by the 2020 election results today, Hope writes. "It is time to move forward and respect the will of the voters and electors," Leadership Now Project said in a statement. "The United States of America built the most powerful economy in the world in no small part due to the stability of our government and the peaceful transfer of power we have enjoyed for generations," Small Business for America's Future reaffirmed.  "The lawless and violent attack … was an assault on American democracy. … Today, we reiterate our strong condemnation of the perpetrators and the falsehood of an illegitimate 2020 presidential election," said Business Roundtable CEO Joshua Bolten. Go deeper: A majority of Americans expect another attack like Jan. 6, according to a new Axios-Momentive poll.     A message from Axios A better way to communicate with stakeholders     What's new: AxiosHQ is a simple writing tool — perfected by Axios writers and machine learning — that helps you write with clarity and efficiency. It includes tips to make your internal communications more effective. For example, add an Axiom to highlight your main points. Learn more.   🙌 Thanks for reading! Have a good one, and remember to take care of yourself. Like this email style and format? Bring the strength of Smart Brevity® to your team — more effective communications, powered by Axios HQ.   Axios thanks our partners for supporting our newsletters. If you're interested in advertising, learn more here. Sponsorship has no influence on editorial content. Axios, 3100 Clarendon B‌lvd, Suite 1300, Arlington VA 22201   You received this email because you signed up for newsletters from Axios. 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